to produce chips. That’s a big deal for Intel. The company has struggled to compete with TSMC for years, and its foundry business has barely won outside customers. Terafab is the first major external commitment for Intel’s foundry . The market reacted fast — Intel stock had its best month ever in April , more than doubling in value. For you as a reader, the takeaway is simple. Musk isn’t trying to build a fab from scratch alone. He’s plugging into Intel’s existing manufacturing expertise while bringing his own scale and capital. What This Means for AI Infrastructure The bigger story here is what Terafab signals about the AI race. Compute is the new oil, and the companies that control it will dominate the next decade. But chips are only part of the picture. Even with the best hardware, AI systems still face security and trust problems. We saw this firsthand in the recent Grok wallet exploit that drained 3 billion DRB tokens through a Morse code prompt injection. Building powerful AI chips is one thing. Building AI agents that can’t be tricked is a separate, equally hard problem. The Terafab plan also puts pressure on other big players like Google, Amazon, and Microsoft, are all racing to design their own AI chips. NVIDIA is now the most valuable company in the world precisely because chips are the bottleneck. If Musk pulls Terafab off, his companies will become less dependent on NVIDIA